“RealtorMag” the on-line magazine published for the National Association of Realtors, listed issues impacting the housing industry in 2011. These were noted by Trulia’s chief economist, Jed Kolko in a “Time” magazine article. Some of these issues and their impacts, paraphrased, are:
1. Fallout from banks approving foreclosures without proper review procedures. The consequence is that banks now have to take extra precautions. Regulators and banks are working on a settlement that could improve the pace of foreclosures in 2012.
2. Natural disasters: tornadoes, floods and hurricanes pushed the National Flood Insurance Program into the spotlight. This program was still strapped financially from Hurricane Katrina. Thus, insurance premiums did not fully cover the Katrina disaster. Home owners living in flood-prone areas must now have flood insurance to get a mortgage. If the National Flood Insurance Program is not taken beyond its current May 2012 extension, the future of mortgages in areas prone to floods is uncertain.
3. Loans backed by Fannie Mae, Freddie Mac and FHA. Mortgage lenders are willing to charge lower rates for loans backed by Fannie and Freddie with a lower conforming loan limit. A smaller number of loans now qualify for this backing according.
Regardless of impacts to the housing industry in 2011, it is now 2012. The future is ahead. While understanding negative impacts on the past can help us plan for the future, it is time to look for new ways around obstacles to make the dreams of home buyers and home sellers come true.
Monday, January 16, 2012
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